Newtouch(SH:688590) Xin Lang Cai Jing·2025-04-28 14:47Core Viewpoint - Shanghai Xinzhi Software Co., Ltd. reported significant changes in financial metrics for the 2024 annual report, with a notable 88.21% decline in net profit and a 43.81% increase in sales expenses, indicating potential investment risks and opportunities for stakeholders [1][3]. Financial Performance - The company achieved operating revenue of 1,995,198,312.45 yuan, an 18.57% increase year-on-year, driven by the rapid development of the domestic digital economy and increased investment in AIGC applications [2]. - Net profit attributable to shareholders was 8,092,740.19 yuan, down 88.21% year-on-year, primarily due to increased sales and R&D expenses related to AI development and costs associated with employee stock options [3]. - The net profit excluding non-recurring items was -4,114,434.67 yuan, reflecting a 109.51% decline, indicating challenges in core business profitability [4]. - Basic earnings per share were 0.03 yuan, down 89.66%, while the diluted earnings per share were -0.02 yuan, down 111.11%, mirroring the trends in net profit [5]. Expense Analysis - Sales expenses rose to 124,963,545.24 yuan, a 43.81% increase, attributed to the company's shift towards AI products and increased marketing efforts [6]. - Management expenses increased by 32.11% to 119,745,572.90 yuan, driven by talent expansion and new stock incentive costs [7]. - Financial expenses grew by 11.26% to 49,463,188.55 yuan, mainly due to increased loan interest expenses [8]. R&D and Innovation - R&D expenses reached 152,291,331.77 yuan, a 12.57% increase, reflecting the company's commitment to technological innovation in AIGC solutions [9]. - Total R&D investment was 176,501,191.67 yuan, accounting for 8.85% of operating revenue, with a workforce of 821 R&D personnel [10]. Cash Flow and Investment Activities - Operating cash flow net amount was 38,542,609.87 yuan, down 55.15%, due to delayed project payments amid increased AI-related demand [11]. - Investment cash flow net amount was -399,060,484.71 yuan, primarily due to significant expenditures on property purchases and renovations [12]. - Financing cash flow net amount increased to 306,815,284.83 yuan, up 863.16%, largely from increased mortgage loans [13]. Management Compensation - The chairman received a pre-tax compensation of 1.2573 million yuan, while the general manager received 984,400 yuan, reflecting the company's incentive structure aimed at enhancing operational efficiency [15].